Condor Energy identifies additional key oil targets in Peru’s TEA area

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By Colin Hay - 
Condor Energy ASX CND oil gas Peru TEA

Condor Energy (ASX: CND) continues to identify significant potential drill targets with new studies of its Technical Evaluation Agreement (TEA) area off the coast of Peru.

Two large oil prospects named Raya and Bonito have already been identified and regional mapping indicates that the primary source rock interval is mature for oil generation over much of the TEA area.

Based on analysis of surface outcrops, cuttings and core samples from previous wells published by Peruvian national oil regulator Perupetro, Condor says there are numerous potential source rock intervals in the Tumbes Basin.

Three-way agreement

Condor and partner Jaguar Exploration entered into an agreement to operate the TEA with Perupetro in August 2023.

The 4,858 square kilometre TEA area covers almost all of the Peruvian offshore Tumbes Basin in water depths of between 50m and 1,500m.

The underexplored block is surrounded by multiple historic and currently producing oil and gas fields.

It also contains the undeveloped shallow water Piedra Redonda gas field, with estimated contingent gas resources of up to 404 billion cubic feet and a best estimate of prospective gas resources of 2.2 trillion cubic feet.

Proven reservoirs

The company recently completed an interpretation of the wider regional seismic data that mapped key intervals and confirmed that the Heath and Mancora Formations likely sit within the maturity window for oil and gas generation, respectively.

The Zorritos reservoirs, which are the primary targets for the Raya and Bonito prospects, have been proven by the Corvina, Albacora and Delfin oil discoveries in the TEA area.

These discoveries are likely to have been charged from the underlying Heath Formation source rocks.

Exclusive option

Under the TEA, Condor and Jaguar have a two-year exclusive option (with the possibility of a further one-year extension) to convert all or part of the area into one or more licence contracts.

Since being awarded the TEA, the joint venture has undertaken a number of technical studies suggesting that the Raya and Bonito prospects may be favourably located with respect to mature source rocks within the peak oil generating zone.

Regional data interpretation has identified several other prospective features that may be favourably located with respect to their fetch area and anticipated migration route from the mature oil kitchen.

These are currently being mapped in greater detail by Condor.

Deep gas play

Condor has noted that the depth and location of the Piedra Redonda gas field suggest that there may be an additional deeper gas play present in the basin.

The company believes that, given the structural setting, the deeper gas play in the Mancora Formation is considered independent of the shallower oil play in the Zorritos.

Consequently, most of the Zorritos and younger targets are likely to be insulated from the deeper Mancora-related gas migration.

The company is mapping a deeper play fairway where Mancora sands could receive a gas charge from Mancora or older source rocks with the aim of identifying additional prospects and leads.